First, I just wanted to say that I enjoy reading your blog.

Wanted to make you aware of my online bank which offers some really incredible rates. Presidential Bank is based in Maryland and offers 3.0% on CHECKING accounts. I've used this bank since January '04 and have had a very good experience with them. I originally found them on bankrate.com, although I'm not sure why they are no longer listed on that website.

Alon: Do you have a link to your bank that you could share with us?

I second that.
I've used the presidential bank for about 3 months and am happy with them. The only con is that you need to establish direct deposit from you paychek.
Web address is http://www.presidentialbank.com

Do you think it is worth it to move under $500 to Emigrant entirely from ING or split the money up a bit?

For $500 we are talking about $3 difference in interest a year based on the current APY difference. If I were you, I will not bother to move the money. Instead, I will focus on saving more.

Took a quick look at the site and the FAQ, didn't see any explanation of "variable" in their offer of a "variable 3.25% Annual Percentage Yield."

I use Presidential Bank checking as well, it's great. Free checks and no limit in transactions. They do have a direct deposit requirement, however.

Steve - the rate is variable, which means that they can change it, but it is also guaranteed to be at least 3.25% until the end of this year. So it's not just a bait-and-switch.

Jonathan

ING Direct is also a variable rate if I recall correctly. There is really no way for a savings account to not have a variable rate. They would lose money whenever the Federal Reserve lowered interest rates.

With these online banks, such as Presidential Bank and Emigrant Direct, where are their ATM locations? Because I go to my credit union’s ATM to withdraw cash and there is no service fee charged.

Has anyone had any experience with CorusBank? They also have outstanding rates on CD's and Money Market accounts.

Sorry for the double post, but quick question for mm: You mentioned you have account with several major banks. Do you keep just the minimum balances to keep the accounts active (the lower yielding ones) or do you spread the funds evenly across all accounts?

Right now, I am keeping minimal balances (<$100) in VirtualBank, ING Direct and CapitalOne each and part most of my money with EmigrantDirect. The invisible hand is apparently at play here :-)

I am a newbie to online banking. My #1 concern is secutity/identity theft. Can someone shed some light here?

Also ... how does one designate beneficiaries? Since accnts are indiv or Joint only.
Joint assets can be invaded by the other persons anti-law team!
Thanks,
Bill k.

Myra, you can keep your local credit union for ATM purpose, or you can use presidential bank card at an ATM that doesn't charge fees, such as at Wawa (east coast) or Washington Mutual bank (west coast), or request cash back at any supermarket when you do grocery.

I have been with presidential bank since early 2003, and every thing is great. Other fees are also lower than most other banks. Emigrant Direct is different. It's a saving account only and not perfectly liquid, as there is a delay when you need the money. Presidential's checking interest is the highest at all time. When ING was 2.10%, it's 2.75%. They spare all the advertisement money and give back to you. Its website can also be simply http://www.presidential.com

By the way, Penfed.org has 3 year CD with 5% APY. It has only 6-month early withdrawal penalty. If you can hold it for at least a couple of years, it'll beat anything else.